Life insurance/mortgages

Lauralou79

Finally have an accepted offer:TAnd a mortgage appointment to follow. Regarding life insurance etc do mortgage companies want you to have a policy. I'm an NHS pension member ( still in service) so have death in service benefits from this. Is this enough?
Thanks

ACG

You do not have to have life insurance.

Lauralou79

Thanks. Don't really see the point if we both have pension benefits.

minimike2

DIS is not a substitute for mortgage protection really. Iit is payable at the discresion of the trustees and could be removed or varied at any time. Not to mention you may leave your employment for any number of reasons, including ill health, at which point the benefit would no longer be there.

Do you have any children at all? DIS is good to provide for the family in the event of a lost income. If it is used to repay the mortgage, what replaces your income? Do you have any Income Protection?

dunstonh

Thanks. Don't really see the point if we both have pension benefits.

DIS is to cover for reduced pension benefits and immediate lost income. It is generally not enough for most people who dont have debts. Let alone those with..

glosoli

This isn't directed to the original poster, but just generally speaking, I am constantly amazed at people who will insure their mobile telephones or laptops or even their cats in case something goes wrong, but when it comes to insuring the biggest liability they will ever have, and their family HOME, they find excuses to avoid paying for life insurance and critical illness.

If you have ever had the privilege of telling someones widow that their husband didn't bother taking it out because they couldn't spare a small amount each month you would know why it's important.

Anyway, rant over..

Lauralou79

Actually our small mortgage ( that we need) would be almost covered by either of our DIS benefits if this happened.The other would be able to cover the remaining in their wage. If circumstances changed within work it would be reassessed although we are very lucky with sick pay/pensions in the NHS ( I know things can change!!)
No dependants or plans in that area. I was merely asking a mortgage question, I'm happy to pay for things if needed, if I was that irresponsible I wouldn't be paying into a pension.

Dutsey

I think you have taken Glosoli point's personally.

What would happen if you got a critical illness? Would your work benefit cover this? If you didn't want to cover the full mortgage with Life insurance you could always cover for example half of it. For the cost as well I see no issue - My wife is paying £8 for 100,000

minimike2

Lauralou79 wrote: »

Actually our small mortgage ( that we need) would be almost covered by either of our DIS benefits if this happened.The other would be able to cover the remaining in their wage. If circumstances changed within work it would be reassessed although we are very lucky with sick pay/pensions in the NHS ( I know things can change!!)
No dependants or plans in that area. I was merely asking a mortgage question, I'm happy to pay for things if needed, if I was that irresponsible I wouldn't be paying into a pension.

And if you were unable to work long term owing to critical illness and didn't die, how long would you receive an income for? Sad fact is most people are better of dead than ill, financially speaking. What will happen if the trustees choose not to pay out?

IP is certainly something most people should consider having.

horseymchorseface

I wouldn't trust the NHS to pay for your ills or death. They will always find some excuse


http://www.pulsetoday.co.uk/your-practice/practice-topics/pensions/family-of-gp-locum-who-died-on-day-off-denied-death-in-service-benefits/20010259.article


Better getting and paying for something you actually know will pay out than relying on something you don't pay directly. You get what you pay for after all.

poppy10_2

horseymchorseface wrote: »

I wouldn't trust the NHS to pay for your ills or death. They will always find some excuse


http://www.pulsetoday.co.uk/your-practice/practice-topics/pensions/family-of-gp-locum-who-died-on-day-off-denied-death-in-service-benefits/20010259.article


Better getting and paying for something you actually know will pay out than relying on something you don't pay directly. You get what you pay for after all.

I wouldn't have expected a locum to qualify at all. That's the price you pay for the flexibility of sessional work